f you're looking for a great fact about the tax basis "step-up" on a California home after a spouse passes away, here's one that is very useful for homeowners:

In California, if a married couple owns their home as community property, when one spouse passes away, both halves of the home's tax basis are generally stepped up to the home's fair market value on the date of death. This can significantly reduce or even eliminate capital gains taxes if the surviving spouse later sells the home.

Example

• You and your spouse bought your home for $500,000.
• At your spouse's death, the home is worth $1.8 million.
• Instead of only half the basis increasing, the entire property's basis is generally adjusted to $1.8 million(assuming it qualifies as community property).
• If the surviving spouse sells the home shortly afterward for around $1.85 million, there may be little or no taxable capital gain (before considering selling costs and the home sale exclusion).

This is one of the most valuable tax benefits available to married homeowners in California.

If you're creating content for your real estate website or social media, you could say:

Did you know? California homeowners may receive a full step-up in tax basis when a spouse passes away if the home is held as community property. This can save families tens or even hundreds of thousands of dollars in capital gains taxes. If you're navigating this situation, understanding your options before selling is important.

This topic is particularly valuable for your senior downsizing clients and widows or widowers who may be deciding whether to sell or keep their home. Consult you Accountant for further questions about this tax benefit.

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